Search Acumen comments on today’s ONS House Price Index

Andy Sommerville, Director at Search Acumen, comments on the publication of the House Price Index by the Office of National Statistics (ONS).

“As another month passes, house price growth continues to lose steam across the country. The end to the seller’s market appears to be looming and property investors will be taking stock of their portfolios and assessing where might be most impacted by a lull in valuations.

“So far, the London market appears to be taking the main brunt of this sea change. Having experienced exponential growth over the last 10 years, we have likely reached an affordability breaking point as fewer prospective homeowners search the capital for their home and prices are suffering as a result.

“This super cooling is borne out in HM Land Registry’s data on London home sales. Our research has found that between the first half of 2017 and 2018, the number of residential properties sold in the capital fell by almost a quarter as a London property has become more unaffordable for more people^[1].

“We turn towards the Chancellor’s Autumn Budget for continued support for UK housing in order to ensure the market works for both buyers and sellers alike.”

^[1]In H1 2017, 26,995 residential properties were sold in London, as compared to 20,831 in H1 2018. All data from HM Land Registry’s Price Paid Data for Greater London’s 28 boroughs. The data tracks the residential and non-residential property sales in England and Wales that are lodged with Land Registry for registration.

Kindly shared by Search Acumen